Carphone Warehouse 2016 Annual Report Download - page 130
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Notes to the Group financial statements
128
21 Retirement and other post-employment benefit obligations continued
Analysis of scheme assets:
30 April
2016
£million
2 Ma
y
2015
£million
Overseas and global equities – Listed 277 286
Diversified growth – Listed 170 182
– Unlisted 11 10
Multi-asset credit funds – Listed 28 29
– Unlisted 24 23
Emerging market multi asset funds – Listed 45 49
– Unlisted 3 3
Private equity – Unlisted 37 47
Property – Unlisted 13 15
Index-linked gilts – Listed 102 101
Corporate bonds – Listed 80 79
Liability driven investments (LDI) – Listed 112 69
Cash and cash instruments – Unlisted 20 51
Other – Unlisted 1 1
923 945
The investment strategy of the scheme is determined by the independent Trustee through advice provided by an independent
investment consultant. The scheme invests in a diverse range of asset classes as set out above with matching assets primarily
comprising holdings in inflation linked gilts and corporate bonds.
Actual return on the scheme assets was a loss of £24 million (2014/15: gain of £111 million).
(v) Sensitivities
The value of the UK defined benefit pension scheme assets are sensitive to market conditions, particularly equity values which
comprise approximately 64% of the scheme’s assets. Changes in assumptions used for determining retirement benefit costs
and liabilities may have a material impact on the 2015/16 income statement and the balance sheet. The main assumptions are
the discount rate, the rate of inflation and the assumed mortality rate. The following table provides an estimate of the potential
impacts of each of these variables if applied to the current year consolidated income statement and balance sheet.
Net finance costs Net deficit
Year
30 April
2016
£million
13 months
2 May
2015
£million
30 April
2016
£million
2 May
2015
£million
Positive / (negative) effect
Discount rate: 0.25% increase 2 2 75 73
Inflation rate: 0.25% increase† (2) (2) (52) (57)
Mortality rate: 1 year increase (2) (2) (41) (42)
† The increase in scheme benefits provided to members on retirement is subject to an inflation cap.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
d) Other post-employment benefits – IAS 19
The Group offers other post-employment benefits to employees in overseas territories, in particular in Greece. These benefits are
unfunded. At 30 April 2016 the net obligation in relation to these benefits was £3 million (2015: £3 million).
00_DC 2016 Annual Report.pdf 128 11/07/2016 18:34